Reuters reports that China’s decision to impose an 80.5% tariff on barley imports from Australia is “deeply disappointing,” Australian Trade Minister Simon Birmingham said on Monday.
China said earlier that it will impose anti-dumping and anti-subsidy duties on barley imports from Australia starting on Tuesday, adding to bilateral tensions between the two countries.
Birmingham said Australia has neither subsidized nor emptied barley in China.
Australia is deeply disappointed with China’s decision to impose duties on Australian barley, Birmingham said in a statement sent by email.
Australia is a dominant player in world barley export markets, accounting for 30 to 40 percent of world malting barley trade and 20 percent of feed barley trade. According to AEGIC Research, Australia is a major exporter of barley, accounting for more than 40 percent of world trade in malting barley and 20 percent of the trade in feed barley.
According to ABC News, Australian barley exports to China were $ 600 million in 2019, up from $ 1.5 billion in 2018 due to drought and an effort to diversify into more markets.
Western Australian farmers will feel the weight of the tariffs; about 88 percent of barley exports to China come from WA.
The AUD is negotiated as a proxy for world trade wars and Chinese affairs. It is a direct blow which can only weigh more on the AUD. Meanwhile, the AUD posted a broader sense of risk at 0.6527 as the US dollar eases.